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Last updated on Friday, December 28, 2012
(INDIANAPOLIS) - Regulators have approved a settlement that prohibits Duke Energy Corp. from passing on to consumers more than $2.6 billion of the construction costs for its troubled coal-gasification plant in southwestern Indiana, requiring the utility to absorb nearly $900 million in cost overruns.
The Indiana Utility Regulatory Commission approved the agreement involving Duke's Edwardsport power plant on Thursday. The plant is currently projected to cost $3.5 billion. The original cost estimate in 2007 was $1.9 billion.
Duke said in April that customers' rates would increase by 14.5 percent under the deal.
The commission says it modified the deal to provide another $28 million in various credits to ratepayers.
The proposed deal was announced in April by Duke and the agency representing utility ratepayers.
A spokeswoman says Duke is reviewing the order.
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